CK Birla Group flagship Orient Cement posts revenue growth of 30%, operating margin at 22%

Posted by: at 7/26/2017 05:00:00 am
CK Birla Group flagship Orient Cement posts revenue growth of 30%, operating margin at 22%


New Delhi, July 26, 2017 - Orient Cement Limited, a part of the diversified CK Birla Group, announced its financial results for the quarter ended June 30, 2017. The company has reported a revenue growth of 30% over the corresponding quarter last year on account of sustained volumes and improved prices. The operating margin for the Quarter improved significantly to 22%. The EBITDA for the quarter has increased to Rs. 123 crores from under Rs. 44 crores in the same quarter last year and from Rs. 79 crores in the preceding quarter. Compared to the Net Profit of Rs. 39 crores for the quarter, the Company had reported a loss of about Rs. 8 crores in the same quarter in FY17.

Deepak Khetrapal, Managing Director and Chief Executive Officer, Orient Cement said: “The quarter ended June 30 has seen healthy volumes across our core areas and based on the current monsoon trends, the demand from the rural sector can be expected to be strong in the second half of the year. We successfully and seamlessly transitioned to the new GST regime while passing on the immediate price benefit of the new tax regime to our customers.
Our overall operating efficiencies continue to reflect our “best in class” operating practices and our keen focus on costs. While the impact of the higher fuel costs is unavoidable, our constant cost management efforts keep such impact to the minimum and keep us competitive on the basis of our low cost of production.  

The Company remains positive on the demand outlook based on the expectation of a normal monsoon. The government’s push on infrastructure and affordable housing are expected to be major demand drivers in the second half of this financial year. Various government projects for low cost housing, roads, irrigation, metros as well as new initiatives like “Smart Cities” & “Swachh Bharat” continue to generate demand for cement in all our areas of operation.”


About the CK Birla Group
The CK Birla Group is a growing US$1.8 billion conglomerate that has a history of enduring relationships with renowned global companies. With over 20,000 employees, 41 manufacturing facilities, service footprint across 24 locations, numerous patents and awards and a customer base that includes some of the world's best-known companies, the Group’s businesses are present across five continents. The Group operates in three industry clusters: technology and automotive, home and building, and healthcare and education. They are strengthened by common ownership and shared guiding principles that include a focus on long-term value, trust-based relationships and philanthropy. For more information visit us at www.ckbirlagroup.com

About Orient Cement
Orient Cement Limited is part of the USD 1.8 billion diversified CK Birla Group. Earlier a division of the multi-product, multi-unit Orient Paper and Industries Limited, Orient Cement was de-merged with effect from April 1st, 2012 and became a public limited company. The company produces 5 MTPA cement annually from its two plants in Andhra Pradesh and Maharashtra. Its first Greenfield project at Devapur in Adilabad District, Andhra Pradesh began cement production in the year 1982. In the year 1997, a split-grinding unit (also a Greenfield project) at Nashirabad, in Jalgaon, Maharashtra was added. With the new plant at Chittarpur in Gulbarga district, Karnataka having been commissioned in September 2015, Orient Cement Limited now has a total installed capacity of 8 million tons.

Orient Cement is certified for both ISO 9001:2008, and ISO 14001:2004 and also OHSAS 18001:2007 from Det Norske Veritas, Netherlands. The company sells cement under its popular brand Birla A1 Premium Cement in Maharashtra, Telangana, Andhra Pradesh, Karnataka and parts of Tamil Nadu, Chhattisgarh, Gujarat and MP.


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